Not every American company is able to conduct all of its business within the United States. Therefore, it’s common for many companies to partner with other countries. Considering that, it’s understandable for businesses in the United States to partner with China. With that in mind, here are three reasons to partner with Chinese accounting firms.
- Finding Out About Early Warnings
Every year, the SEC or Securities and Exchange Commission brings large numbers of civil enforcement actions against both companies and individuals. Considering that, SEC compliance audits in China differ from those in the United States. Therefore, it’s best to have a Chinese issuer CPA firm on the side of your company.
- Saves Immense Amounts of Time and Effort
Preparing corporate taxes for your own country takes enough time. Considering that, companies working with foreign businesses will have to prepare additional tax documentation. It’s likely taken considerable amounts of time to learn how the United States tax system works. With that in mind, it’s going to take long amounts of time to learn how Chinese taxes work on your own.
- Peace of Mind During an Audit
No business owner wants to hear they’re being audited. If you own a large company, you’ll likely carry more of a risk of this happening. In fact, statistics gathered from 2017 found that companies with balance sheets over $20 million carry an audit risk of 60%. It’s important to work with business advisory services in China while working with Chinese companies. These corporate audit and assurance services help keep you safe from any discrepancies or issues before auditing takes place.
In conclusion, it’s important to have help on your side while doing business with Chinese companies. Statistics from the U.S. Bureau of Labor Statistics found that there are 1,397,700 accountants and auditors working throughout the United States. Unfortunately, your company might be in need of accountants handling taxes while doing business with Chinese companies. Understandably, you’re going to need corporate audit and assurance services that understand how to prepare Chinese taxes. In turn, you’ll be able to rest assured that you’re able to continue having successful business relationships with Chinese companies.